US Inflation | CPI Beats Expectations, Refocusing Attention on Hike Size
October CPI rose 0.4% month over month, above the 0.3% consensus, while core CPI increased 0.3%, exceeding the 0.2% forecast. Housing and food prices continued rising. Most annual comparisons were unavailable because some October 2025 survey data were missing.
Attention shifted to the size of December's rate increase. Governor Waller said a worsening inflation picture could warrant a 50-basis-point move. Higher rate expectations lifted Treasury yields and raised the earnings hurdle for technology valuations.
October CPI rose 0.4% month over month, above the 0.3% consensus, while core CPI increased 0.3%, exceeding the 0.2% forecast. Housing and food prices continued rising. Most annual comparisons were unavailable because some October 2025 survey data were missing.
Attention shifted to the size of December's rate increase. Governor Waller said a worsening inflation picture could warrant a 50-basis-point move. Higher rate expectations lifted Treasury yields and raised the earnings hurdle for technology valuations.